three persons A, B nd c go into a business. A contributing rs50000,B Rs30000 nd C Rs25000 of the capital on the understating that after allowing 4/25th of the profit to c as a manager, the remainder should be Divided amongst then in proportion to the amount of capital contributed by each. The total profit at the end of the year amounted to RS30000 find the receipts of each partner.
Answers
Answer:
A, B and C were capitals of Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively carrying on business in partnership. The firm's reported profit for the year was Rs. 79,200. As per provisions of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs. 20,000, in addition to his capital contribution?
Explanation:
Profit after charging interest = Profit before charging interest - Interest on loan
= RS-79,200 - 1,200
= RS-78,000.
Profit distribution among partners = RS-78,000/3
= RS-26,000.
Profit for B and C = RS-26,000
Profit for A = RS-26,000 + RS-1,200
= RS-27,200.
Note:-.
1) When there is no mention about the profit sharing ratio among partners its assumed to be equal.
2) If there is no agreement or no provision regarding interest on loan in the agreement then the interest will be charged @ 6% p.a.
I have taken another similar question so that you do it by yourself.
plz mark as brainliest .
hope it helps.
hope you understand.
thx.......,